PORTAGE | Unless the state steps forward, the embattled Little Calumet River Basin Development Commission could be out of business by the end of the year.

Now virtually leaderless with the resignation of its longtime executive director, Dan Gardner, the commission also is confronted with operating funds running short. Officials say early on in the project, the state funded administrative costs with a $700,000 certificate of deposit, telling the board to live off the interest along with several sources of miscellaneous revenue.

When the interest no longer sufficed, the CD was cashed in at the direction of the state. It has run out, and the state has paid administrative costs on a monthly basis for two or three months with money remaining from state appropriations, which may last only until the end of the year.

As the full board on Monday formally accepted Gardner's resignation, commission Chairman William Biller said in addition to having to launch a search for Gardner's replacement, the next highest priority is finding funding to continue the board's mission.

Biller said an executive session of the board has been called to precede Wednesday's regular session to discuss the criteria for Gardner's replacement.

"It's also my personal opinion that just beside looking for an executive director, the first thing on the agenda is going to be funding for this commission," Biller said. "We have numerous things getting ready to go to court. We need to have the funds available ... so that we can proceed."

Biller said more information regarding the funding question would be available to the board during its executive session Wednesday.

Regarding the audit of the commission sought by nine Northwest Indiana lawmakers, Biller said he welcomed the process. "As soon as we can get that started, the better off everyone we'll be," he said.

Emerson Delaney, a former commission chairman who served on the board for eight years, objected to losing Gardner and also to potentially replacing board members. Delaney said the board already had all the expertise it needed.

"(U.S. Rep. Pete Visclosky) knows full well how this commission operates," Delaney said. "What has happened is the congressman has been embarrassed."

Delaney said the commission has sought more than $70 million in funding from the General Assembly with the aid of no lobbyist and received less than $30 million as construction costs accelerated.

State Sen. Frank Mrvan Jr. said he objected to the commission requesting another $4 million in funding.

"I think this is just the straw that broke the camel's back," he said of the funding request and the recent flooding.